It looks like markets have shrugged off the higher US CPI data from yesterday, and rather quickly at that. For me, the main reaction was in the bond market and that is the one that is reverberating across broader markets as well in the aftermath. More on that here.
As yields fail to clear the key technical hurdle, that has seen the dollar fall back and broader markets reverse the initial price action to the inflation numbers. While equities finished little changed, it belies the price action yesterday in which we saw a solid recovery for US stocks to close near flat levels on the day.
Looking to trading today, we’re back to the drawing board and it’s all about reading the market appetite again. As traders fail to build upon last week’s price action, is it time to revisit the moves from November and December? That is the big question now.
As for economic releases in Europe, UK monthly GDP for November is the main highlight. It should reaffirm slightly growth after a poor October showing, as the UK economy does look like it has clawed its way out of the pit towards the end of last year. There’s also French and Spanish inflation but they are the final readings for December.
0700 GMT – UK November monthly GDP figures
0745 GMT – France December final CPI figures
0800 GMT – Spain December final CPI figures
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
Read More: UK monthly GDP on the agenda today